Comparison
Open tenders vs frameworks: which should a small IT firm chase?
How winning an open tender compares with getting onto a framework, standing offer or supplier list, the costs and payoffs of each, and how to balance the two.
Public buyers spend money in two broad ways: by running a competition for each contract, or by first setting up a framework agreement or list of approved suppliers and then buying from it. Each needs a different approach from you.
Side by side
| Open tender | Framework or supplier list | |
|---|---|---|
| What you win | A contract | The right to compete or be chosen |
| Revenue | Known, starts soon | Uncertain, may be zero |
| Competition | Anyone eligible | Only listed suppliers |
| Effort to get in | One bid per contract | One big application, then short bids |
| How often | Every time | Every few years, when the list reopens |
| Best for | Specific projects you're strong at | Ongoing buying of common services |
Why frameworks matter
A large share of public IT spending goes through frameworks, such as G-Cloud in the UK, GSA Schedules in the US, federal supply arrangements in Canada and BuyICT in Australia. If you are not on them, you never see that work.
Why frameworks disappoint
Plenty of firms get on a framework and win nothing. Being listed alongside hundreds of others does not make buyers call you. Work under a framework still goes to firms that buyers know, through mini-competitions or direct awards.
A sensible balance
- Find out which frameworks your target buyers use. Look at award notices, which often name the framework. See using contract award data.
- Get on one or two of those, not every one going.
- Market yourself once you're on. Tell buyers you are listed and make it easy to buy from you.
- Keep bidding on open tenders that fit well, especially to build case studies for the next framework round.
Dynamic lists are easier
Some lists stay open all the time, such as a dynamic purchasing system or many supplier registers. You can join whenever you are ready, which suits small firms better than frameworks that open only every four years.
Common questions
Is it worth getting on a government framework?
It is worth it if the buyers you want to sell to use that framework, and you are prepared to market yourself to them once you are on it. Being listed alone rarely brings work.
How long do frameworks last?
Typically two to four years, sometimes with extensions. Some, like G-Cloud, are re-let on a regular cycle.
Can I win work under a framework I'm not on?
Not directly, but you can work as a subcontractor to a supplier that is on it.